Bilans d’évènement

Succesful Business Lunch with Márton Nagy, Minister for National Economy on january 23rd 2024

Márton Nagy: Hungarian and French economic cooperation is exemplary

_{Photo credits: Ministry for National Economy}

The Minister for National Economy, Márton Nagy was the special guest for the second time since January last year at the opening business lunch of the Hungarian-French Chamber of Commerce and Industry. The event had huge interest among its member companies and the business community of the partner chambers Belgabiz, Joint Venture Association, Swedish Chamber, Swisscham.

Special thanks for the forward-thinking ideas shared, the first-hand information received and the opportunity of exchange with the attending companies.

After greetings from Mr László Károlyi, president of our chamber, the minister Márton Nagy presented the economic perspectives of Hungary for 2024. 

The minister mentioned the exemplary economic cooperation between Hungary and France, the flourishing trade relations, telling that French businesses are an important building block of the Hungarian economy.

France is the fifth largest investor in Hungary, and French companies account for about 6 percent of the foreign working capital holdings amounting to one hundred billion euros. The minister reminded that between 2016 and 2019, France was the fourth largest investor in our country, and at the same time expressed his hope that France can reach this position again. The 425 French companies operating in Hungary ensure the livelihood of 41,000 families, and their sales revenue exceeds HUF 3,700 billion. Parallel to all this, the Hungarian-French foreign trade relations are also flourishing, France is the tenth largest foreign trade partner of our country, the value of trade turnover reaches ten billion euros.

Márton Nagy drew attention to the fact that in 2023 the government successfully reduced inflation and protected businesses, jobs and families. Thanks to this, the government's goal in 2024 - also in cooperation with French businesses – is to restore economic growth and expand the economy by 4% based on three pillars.

First of all, household consumption must be restored. An increase in real wages is necessary, but not sufficient, the trust of the Hungarian population must be reinforced, to solve the precautionary motive. This is helped by raising the minimum wage and the guaranteed minimum wage, as well as wage improvements in the public sector, such as for teachers, national defense workers, healthcare workers or even law enforcement workers. Secondly, domestic production and investments must be restored: the government aims to keep investments above 25%. And as a third step, the activity of the labor market should be further enhanced by involving the 300,000 available Hungarian labor market reserve, so to increase the activity rate in the 15-64 age group from the current 78% to 85%.

Economic growth and strengthening the budget balance go hand in hand, as rising consumption will result in extra budget income, solving the precautionary motive will have a positive effect on both, added the Minister of National Economy. Finally highlighted that the government will implement 4 main measures in 2024 to strengthen the economy: the extended Széchenyi Card Program, the Gábor Baross Reindustrialization Loan Program restarted with 200 billion extra HUF amount, the 33 billion HUF Food Industry Supplier Development Program and the GINOP Plusz funds sources. In addition, it helps to increase competitiveness and investments incentive, such as a significant reduction in warranty fees.

We would like to thank our professional partner, MAPI Magyar Fejlesztési Iroda Zrt., for supporting the event.

You can check the photos taken during the meeting here!